in this article, the set of institutions which embody the form and contents of the economic system of islam is introduced. by institutions, it is meant the economic freedoms, the government, ownership, motivation, the mechanism for coordinating economic activities, power, organization and bureaucracy. after explaining islam’s outlook regarding these institutions, the form and the contents of th...

This paper develops a framework of analysis of the emerging organisational network topology of the new knowledge-driven economy in order to identify critical success factors in the process of innovation. The central argument of the paper is that innovation constitutes the foundation of the competitiveness and value-creation capabilities of economic organisations. However, innovation is not some...

Governance Institutions and Economic Activity By AVINASH DIXIT The concept of “governance” has risen from obscurity to buzzword status in just three decades. EconLit shows only 5 mentions of the word governance in the 1970s; by the end of 2008, it was mentioned 33,177 times. The much more specific phrase “economic governance” has appeared 192 times; its more popular cousin, “corporate governanc...

We investigate whether the impact of institutions depends not just on their current state but also on how they came to be. In particular, we hypothesize that while economic freedom that emerges spontaneously may be growth promoting, economic freedom that emerges as a result of costly lobbying efforts may be less fruitful. In an extreme case, costly lobbying efforts may even negate the growth-en...

The institutional structure of an economy is modeled as a portfolio. This model predicts that a sample of countries with highly diversi ed institutional structures should have a lower variance of economic growth rates than a sample of countries with homogeneous institutional structures. It also predicts that growth rates over time for individual countries with highly diversi ed institutional st...

This paper studies the effects of contracting institutions on economic development. A model is presented with endogenous incomplete markets, where financial frictions generated by the imperfect enforcement of contracts depend on the future growth of the economy, which determines the costs of being excluded from financial markets after defaulting. As the economy approaches its steady state, fric...